Description

UNIFI Mutual Fund reduces minimum installments for SIP/STP/SWP from 12 to 6 months and introduces Choti SIP facility with Rs. 250 minimum for new investors, effective October 1, 2025.

Summary

UNIFI Mutual Fund has announced two key changes effective October 1, 2025: (1) reduction in minimum installments for SIP, STP, and SWP from 12 to 6 months across three schemes (Dynamic Asset Allocation Fund, Flexi Cap Fund, and Liquid Fund), and (2) introduction of Choti SIP facility allowing new mutual fund investors to invest as low as Rs. 250 per month with a minimum commitment of 60 installments in the Growth Option of Unifi Flexi Cap Fund.

Key Points

  • Minimum installments for monthly SIP/STP/SWP reduced from 12 to 6 across Unifi Dynamic Asset Allocation Fund, Unifi Flexi Cap Fund, and Unifi Liquid Fund
  • Investment dates expanded to allow any date during the month (previously excluded 29th, 30th, and 31st)
  • Choti SIP introduced with Rs. 250 minimum monthly investment for new investors only
  • Choti SIP limited to maximum three SIPs (one per AMC) and requires 60-installment commitment
  • Choti SIP restricted to NACH and UPI auto pay payment modes only
  • Weekly SIP frequency for Unifi Flexi Cap Fund changed from Wednesday only to Monday-Friday
  • Changes apply to both Direct and Regular Plans under Growth Option

Regulatory Changes

Choti SIP facility introduced in accordance with SEBI Letter No. SEBI/HO/IMD/PoD-/OW/P/2025/5586/1 dated February 20, 2025. This represents SEBI’s initiative to promote small-ticket investments and increase mutual fund penetration among new investors.

Compliance Requirements

For UNIFI Mutual Fund:

  • Update Scheme Information Document (SID), Key Information Memorandum (KIM), and Statement of Additional Information (SAI)
  • Implement systems to verify investor eligibility for Choti SIP (ensure investor has no existing mutual fund investments)
  • Reject Choti SIP registrations for ineligible investors
  • Restrict Choti SIP to NACH and UPI auto pay modes only

For Investors:

  • Choti SIP eligibility: Must be completely new to mutual fund industry (no existing SIPs, lump sum investments, or holdings in any scheme across any mutual fund)
  • Commit to minimum 60 installments for Choti SIP (though early withdrawal permitted with applicable exit load)
  • SIP top-up facility not available for Choti SIP

Important Dates

  • October 1, 2025: Effective date for reduction in minimum installments (SIP/STP/SWP)
  • October 1, 2025: Launch date for Choti SIP facility in Unifi Flexi Cap Fund

Impact Assessment

Positive Impacts:

  • Lower entry barrier for retail investors: Reduction from 12 to 6 minimum installments provides greater flexibility
  • Financial inclusion: Choti SIP at Rs. 250 enables participation from lower-income investors new to mutual funds
  • Improved convenience: Expanded date options for installments (any date vs. excluding 29th-31st) and additional weekly SIP days

Operational Impacts:

  • Fund houses need enhanced KYC/investor verification systems to validate Choti SIP eligibility
  • Distribution platforms must update systems to accommodate new minimum installment requirements and date flexibility

Market Impact:

  • Minimal direct market impact as changes are operational in nature
  • Long-term potential for increased retail participation in mutual funds through lower barriers
  • Applies only to UNIFI Mutual Fund schemes; broader industry adoption may follow

Impact Justification

Operational change affecting mutual fund investment products with minimal market impact; primarily benefits retail investors by lowering entry barriers